Is Audioboom starting to prove doubters wrong? Revenue jumps after advertising stats leap
Audioboom's share price rocketed more than 15 per cent this morning after revealing its advertising metrics had leapt over the last quarter, with a fourfold increase compared with the same period 12 months ago.
The Aim-quoted firm generated 304 million advertising impressions over the last three months to the end of February, compared with 58m one year ago and up from 129m in the preceding quarter.
Read more: Audioboom boss insists podcasting is a $1bn industry despite losses
The number of unique file requests, effectively the user appetite for Audioboom hosted podcasts, soared by 231 per cent, from 45m to 149m. As a result, the firm said it expects revenues for the quarter to beat the previous three months' stellar returns, ahead of the £630,000 it made.
Welcome relief
The news comes as welcome relief for the firm after losses mounted last year and negotiations with a Chinese investor to provide lifeline financing stalled.
It also corroborated claims made by chief executive Rob Proctor in December that the next 12 months "would be the year that we proved our business model".
Today Proctor hailed the "significant progress" made by Audioboom "in terms of revenue generation and direct cost management". He added that this was despite the quarter being a shorter period for activity given the Christmas holidays.
Last year Audioboom – which produces City PM's Unregulated podcast – called on a cornerstone investor, property magnate and husband of popstar Holly Valance, Nick Candy, to put a further £2.3m into the business in August.
Read more: Here is how Holly Valance and her husband have boosted Audioboom
Despite additional Chinese investment interest seemingly having fallen away and the firm being left with just £710,000 left in the bank at the end of December, Proctor was previously bullish about what he believes will be a $1bn industry in years to come.
And today Proctor said the tide looked like it was finally turning in Audioboom's favour. He said:
The last six months has seen a significant swing in UK media agency attitudes towards trying and buying podcast advertising, which when combined with the growth in our US media operations means that the Company is well set to hit our ambitious 2017 targets.
Get the latest City PM podcast here: how to fake it 'til you make it